Bitcoin Derivatives Exchange Expands, Skirting China’s Currency Curbs
Bitcoin Mercantile Exchange (BitMEX), a bitcoin derivatives exchange that launched in 2014, already has 5,800 users who have traded $760 million on the exchange, according to Bloomberg. Started by Arthur Hayes, a former Citigroup trader living in Hong Kong, the goal was to create an exchange where people use cryptocurrency to bet on securities not easily accessible to them in their home markets. Because China restricts exchanging its yuan for other currencies, citizens find it expensive and difficult to invest in overseas securities. Foreign investors are also restricted in trading China....
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China’s ongoing crackdown on cryptocurrencies has forced Huobi exchange to halt derivatives trading services to users in China. As per an updated User Agreement from the Seychelles-based exchange, China is now on the list of prohibited jurisdictions for derivatives trading. Crypto users in the country can still access the exchange for spot trading. Huobi Ban […]
Analysis by Drew Hinkes of Berger Singerman LLP. On June 1, 2015, the Securities and Exchange Commission (SEC) shut down and fined Sand Hill Exchange for acting as unregistered broker-dealers, selling security-based swaps, and offering swaps on an unregistered securities exchange. Sand Hill was a bold experiment: Could a trading platform operated across the Bitcoin blockchain allow parties to trade derivatives based on the perceived value of pre-IPO companies? Although Sand Hill may have accomplished the construction of a functional derivatives market traded over the blockchain, the SEC....
Some bitcoin enthusiasts may wonder if this news will affect the cryptocurrency use in China. China has been making a lot of media headlines regarding their forex reserves. A new report indicates these reserves are at a six-year low right now. With less than SU$3tn in liquid foreign exchange assets, things are not looking good for the Chinese economy. It appears the recently introduced capital outflow restrictions are not helping the economy stabilize by any means. It is not surprising to see China’s foreign exchange reserves dwindle every month. Even though January’s decline was smaller....
Crypto derivatives are now among the most common financial products on any cryptocurrency exchange or trading platform, thanks to increased interest among the trading community. Trading crypto derivatives has its own advantages as it allows users to mitigate volatility-associated risks and hedge against potential losses. There are various derivatives products that include Swaps, Futures, Forwards, […]
In Kongyu, Tibet, hydropower electricity is inexpensive, as are wages. And Chinese entrepreneurs are among the world’s most capable and least risk averse. This combination makes Kongyu in China’s western Sichuan province an ideal place for a bitcoin mining operation, as revealed by a Washington Post report. Chinese mines comprise about 70 percent of the world’s bitcoin processing power. Chinese factories produce the cheapest microprocessors that run the mines. Chinese bitcoin exchanges represent a similar portion of global bitcoin trading. Is such dominance good or bad for bitcoin’s....